SERBIA Law and Practice Contributed by: Željka Motika, Ivana Bulatović and Jovana Spasojević Gligorijević, Motika i partneri
rity incident and must notify users if their financial interests could be affected. Banks may temporarily block AISP or PISP access if there is reasonable sus - picion of unauthorised or fraudulent activity, and they must also notify the NBS when such action is taken.
transfers. The regulatory framework includes specific protective mechanisms for situations involving user manipulation, imposing obligations on the payee’s service provider. For example, where reasonable grounds exist to suspect fraud, the payee’s service provider may temporarily restrict the payee’s access to funds for a defined period (up to three days) and may refund the payer if the payee fails to substantiate the lawful origin of the funds. Regulators also monitor risks associated with digital identity and remote customer onboarding, as well as abuses relating to digital assets and online investment platforms. In addition to regulatory supervision, Serbia has a specialised public prosecutor’s office for combating high‑tech crime. This office has jurisdiction over crimi - nal offences committed through information technolo - gies, including fraud occurring within the digital finan - cial environment. 12.3 Responsibility for Losses As a general principle, an injured party is entitled to compensation for any damage suffered, and this rule applies equally to damage resulting from fraud. Where such damage is caused by regulated entities – including financial institutions, capital markets ser - vice providers, or digital asset service providers – civil liability for the loss may be accompanied by criminal liability, depending on the circumstances of the case. Payment service providers are, as a rule, expressly liable for unauthorised payment transactions, as well as for the non‑execution, defective execution, or delayed execution of payment transactions, unless a statutory exemption applies (for example, in cases involving fraudulent conduct by the user). In the case of unauthorised transactions, the provider must refund the transaction amount to the user without delay. The user’s liability for losses is capped at RSD3,000 when the loss results from the use of a lost or stolen pay - ment instrument. The user bears no loss where the provider failed to require appropriate (two‑factor) authentication or where the transaction was executed after the misuse had been reported. The user may bear the full amount of the loss only where the pro -
12. Fraud 12.1 Elements of Fraud
Fraudulent conduct in the financial services and fin - tech sectors in the Republic of Serbia is criminalised through several statutory offences. General fraud pro - visions apply to financial market and fintech activities, covering situations in which a person, with the intent to obtain unlawful financial gain, misleads another through false representation or by concealing facts, thereby causing financial loss. The Criminal Code also specifically addresses com - puter fraud. This includes the manipulation of elec - tronic systems through inaccurate data entries, omis - sions, or other forms of interference carried out to obtain unlawful financial gain and cause damage to another party. Additionally, the unauthorised acqui - sition or use of payment cards or payment data for cashless transactions is expressly criminalised. Fraudulent conduct in capital markets is further reg - ulated by the Capital Markets Act, which includes offences such as market manipulation and misuse of insider information. Comparable conduct in the digital assets market is sanctioned under the Digital Assets Act. 12.2 Areas of Regulatory Focus The regulatory approach in this area is primarily pre - ventive, emphasising the obligation of financial insti - tutions to establish effective systems for detecting, preventing, and promptly identifying fraud. Enforce - ment measures and criminal prosecution serve as complementary components of the broader institu - tional framework. Particular attention is directed toward fraud involving electronic payments, such as unauthorised transac - tions, phishing attacks, payment card misuse, and the manipulation of users to prompt the initiation of funds
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